Centre clears 13 FDI proposals

New Delhi: Global investment banking and securities firm Goldman Sachs’ plans to get into NBFC business moved a step forward with the Government approving a proposal of Goldman Sachs (Mauritius) NBFC LLC to invest Rs 199.25 crore in NBFC activities. Goldman Sachs’ proposal was amongst 13 FDI proposals worth Rs 657 crore cleared by the Government.

The Finance Minister, Mr P. Chidambaram, has approved the proposals on recommendations of the Foreign Investment Promotion Board (FIPB). The proposal of Goldman Sachs entails subscribing to preferential equity shares or compulsorily convertible preference shares. The proposal attracts Press Note 1 (2005) series, an official statement said here.

The Bangalore-based VRL Logistics Ltd’s plan for induction of foreign equity for a consideration of Rs 225 crore through public offer has also received the Government’s nod. The company is engaged in transportation of goods, aircraft charter and courier service.

Other proposals that were approved included Zoom Entertainment Network’s application to bring in Rs 120 crore through induction of foreign equity. The company is engaged in uplinking and broadcasting non-news and non-current affairs television channels.

The Finance Minister also approved the proposal of Toyoda Gosei Company Ltd of Japan for setting up a wholly owned subsidiary to manufacture automobile safety systems, body sealing and steering parts. The proposal, which attracts Press Note 1, will bring Rs 45 crore in the country. The offer from another Japanese company T.S. Tech Company, to invest Rs 15 crore to set up a joint venture firm to manufacture seats and interior of doors for cars, was also approved.

In the defence production, Bangalore-based Alpha-Elettronica Defence Systems’ proposal for 26 per cent stake sale also got the green signal from the Government.

However, the proposal of Future Ventures India Ltd for induction of foreign equity up to 49 per cent by FIIs, NRIs, multilateral and bilateral development financial institutions and other eligible non-residents, was rejected.